May 5 - Cummins lifted its annual revenue growth forecast on Tuesday, supported by resilient demand for its power-generation equipment and expectations from improving North America on-highway vehicles markets.
Shares of the U.S. truck engine maker were up 4% in premarket trading.
The company now forecasts 2026 revenue to increase 8%-11%, compared with its previous view of a 3%-8% growth.
Demand tied to artificial intelligence-driven data-center expansion continued to underpin sales of generators.
"North
America truck markets began to improve from a cyclical low" during the quarter, CEO Jennifer Rumsey said.
The Indiana-based company had previously flagged weak demand in the North American trucking market, where lower freight volumes and margin pressure have weighed on fleet investments and engine orders.
Cummins' Power Systems segment, which makes generators, posted a 19% jump in first-quarter sales, while its Distribution segment sales grew 7% from.
The company reported a profit of $4.71 per share for the three months ended March 31, including charges of $1.44 per diluted share related to completing the sale of its low-pressure fuel cell business. It reported a quarterly profit of $5.96 per share a year earlier.
Revenue rose 2.7% from a year ago to $8.4 billion. Analysts on an average expected $8.35 billion, according to LSEG-compiled data.
(Reporting by Apratim Sarkar and Aatreyee Dasgupta; Editing by Joyjeet Das)
